Wednesday, July 25, 2007

Intermarket Analysis: Profiting from Global Market Relationships

With this ground breaking book, the author, John Murphy, has made an everlasting contribution to the field of technical analysis. After reading this book, it is clear that John Murphy is nothing less than a financial genius, which is why this is one of my favourite books of all time.

Intermarket analysis is a fairly new branch of technical analysis, so you may not have heard very much about it. However, I believe if you want to truly comprehend what moves the markets, you need to become familiar with this new field.

John Murphy begins his book with a review of an earlier book he wrote on the topic. He then discusses the significant events that happened in the markets during the 1980's, and how various markets events during that time, that seemed move independently from each other, were actually interconnected.

As you move deeper into the book, John Murphy discusses the 1997 currency crisis, and the global ramifications that had. From there, John goes into the Nasdaq bubble, and how there were signs of a peak beforehand.

The next section, which was the section I found most interesting, is about how the intermarket scene began to favour gold and hard assets after the the Nasdaq meltdown. John makes some daring predictions in his book that now, looking back, were spot on.

The thing I liked the most about this book was that it gave me a more comprehensive understanding of the markets work, and I feel that I am a better investor because of it. It made me realize that if I was not looking at intermarket analysis, many market movements would seem random, and to come out of nowhere.

Unlike most other books, there was really nothing that I didn't like about this book, which is why I give this book such a high rating.

Overall rating: 10/10

1 comment:

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